Debt Consolidation Calculator
Compare debt consolidation loans, balance transfers, and home equity options. Calculate monthly savings, interest reduction, and payoff timelines instantly.
Debt Consolidation Calculator
Enter your details below to calculate
Your Current Debts
Debt #1
Debt #2
Debt #3
Total Balance
$19,200
Total Monthly
$560
Avg Rate
21.0%
Your Financial Profile
How to Use Debt Consolidation Calculator
Input Your Current Debts
Enter the balance, interest rate (APR), and minimum payment for each credit card or loan you want to consolidate.
Set Your Financial Profile
Select your estimated credit score range and maximum monthly budget to see realistic loan options.
Compare Consolidation Methods
Review the comparison table to see how Personal Loans, Balance Transfers, and Home Equity Loans stack up against your current debt.
Analyze Savings & Timeline
Identify the option that offers the lowest total cost or best monthly payment, and see how much faster you can be debt-free.
Key Features
Compare 5 consolidation methods
Real-time interest savings
Amortization schedules
Affordability analysis
Take Control of Your Debt in 2025
Managing multiple high-interest debts can feel overwhelming. Interest piles up, due dates are missed, and progress feels impossible. This Debt Consolidation Calculator is designed to cut through the noise. By comparing your current situation against five distinct consolidation strategies—from personal loans to balance transfers—you can identify the path that saves you the most money and gets you debt-free faster.
How Debt Consolidation Works
At its core, debt consolidation is about simplification and optimization. You take out a single new loan to pay off multiple smaller debts. This leaves you with one monthly payment, often at a lower interest rate, which means more of your money goes toward the principal balance rather than vanishing into interest charges.
Lower Interest Rates
Replacing 24% APR credit card debt with a 10% personal loan can save you thousands over the life of the repayment.
Fixed Timeline
Credit cards can drag on for decades. Consolidation loans have a set end date (e.g., 3 or 5 years), giving you a clear finish line.
Single Payment
One due date per month reduces the risk of missed payments and late fees, protecting your credit score.
Comparing Consolidation Methods
Not all consolidation loans are created equal. The best option depends entirely on your credit score, whether you own a home, and your discipline level.
Personal Loans
Best for: Good to Excellent Credit
Pros
- Fixed interest rates and monthly payments
- No collateral required (Unsecured)
- Quick funding (often 24-48 hours)
Cons
- Origination fees (1% - 8%) can be high
- Rates can be high for fair/poor credit
Balance Transfer Cards
Best for: Smaller Balances & Disciplined Payers
Pros
- 0% APR for introductory period (12-21 months)
- Aggressive debt reduction (100% to principal)
Cons
- Balance transfer fees (3% - 5%)
- Interest spikes to 20%+ if not paid in full
- Requires excellent credit to qualify
Home Equity Loans (HELOAN)
Best for: Homeowners with Significant Debt
Pros
- Typically the lowest interest rates
- Long repayment terms (10-20 years) lower payments
- High borrowing limits
Cons
- Risk of Foreclosure: Your home is collateral
- Closing costs can be expensive
- Takes weeks to process
Strategic Guide: How to Use This Calculator
- 1
Gather Your Statements
You need accurate balances and interest rates. Check your latest statements for all credit cards and loans you want to consolidate.
- 2
Check Your Credit Score
Your score determines your eligibility. Use a free tool from your bank or issuer to get an estimate. Be honest—inflating your score in the calculator will give you unrealistic results.
- 3
Determine Your Budget
How much can you realistically afford to pay each month? This figure acts as a filter. The "best" loan isn't helpful if the monthly payment is double what you can afford.
- 4
Compare Total Cost vs. Monthly Payment
Don't just look at the monthly payment. A lower monthly payment often means paying more interest over a longer term. Look at the "Total Cost" field to see the true price of the loan.
Real World Scenario
Case Study: Sarah's Credit Card Debt
Sarah has 5,000 in credit card debt across three cards with an average interest rate of 22%. Her minimum payments total $450/month. If she only pays the minimums, it will take her over 20 years to pay off, and she'll pay over $20,000 in interest alone.
Without Consolidation
With Personal Loan (10% APR)
The Golden Rule of Consolidation
Debt consolidation only works if you stop creating new debt. If you pay off your credit cards with a loan but keep using the cards, you will end up with double the debt. Many experts recommend cutting up the cards (but keeping the accounts open to preserve credit age) once the transfer is complete.
About the Author
Jurica Šinko
Finance Expert, CPA, MBA with 15+ years in corporate finance and investment management
Connect with JuricaFrequently Asked Questions
Does debt consolidation hurt my credit score?
Initially, yes. Applying for a new loan causes a small dip (5-10 points) due to the hard inquiry. However, paying off maxed-out credit cards lowers your credit utilization ratio, which usually boosts your score significantly (20-50+ points) within a few months, provided you make on-time payments on the new loan.
What is the difference between secured and unsecured consolidation loans?
Unsecured loans (like personal loans) don't require collateral but depend heavily on your credit score for approval and rates. Secured loans (like home equity loans) require an asset (your home) as collateral. Secured loans typically offer lower interest rates but come with the risk of losing your asset if you default.
Can I consolidate debt with bad credit?
Yes, but options are limited. You likely won't qualify for low-interest personal loans or 0% balance transfers. You might consider a Debt Management Plan (DMP) through a credit counseling agency, which doesn't require a new loan but negotiates lower rates with creditors. Avoid predatory 'payday' consolidation loans with astronomical rates.
Is a balance transfer better than a personal loan?
It depends on the amount and your discipline. A balance transfer card with 0% APR is mathematically the best option if you can pay off the entire balance within the 12-18 month intro period. If you need 3-5 years to pay it off, a fixed-rate personal loan is safer and more stable.
What fees should I watch out for?
Personal loans often have 'origination fees' ranging from 1% to 8% of the loan amount, which are deducted upfront. Balance transfer cards typically charge a 3% to 5% transfer fee. Home equity loans have closing costs. Always calculate the 'Total Cost' (Interest + Fees) to ensure the consolidation actually saves you money.
Will consolidating debt lower my monthly payment?
Usually, yes. By extending the repayment term (e.g., from variable credit card minimums to a 5-year loan), you can lower your monthly obligation. However, a longer term means you might pay more interest in total, even if the rate is lower. Use the calculator to find the balance between monthly affordability and total savings.
Related Calculators
Explore more tools in Credit & Debt Management
APR Calculator: Calculate True Loan Cost & Effective Rate (2025)
Free APR calculator that reveals the true cost of loans by including interest rates, points, and fees. Compare loan offers accurately with our 2025 APR tool.
Auto Loan APR Calculator: True Cost of Vehicle Financing
Free auto loan APR calculator reveals the true cost of vehicle financing including interest rates, origination fees, documentation fees, and all charges. Compare loan offers accurately with real APR calculations.
Balance Transfer Calculator: 0% APR Savings & Fees
Estimate savings with our balance transfer calculator. Compare 0% APR offers, include transfer fees, and see if moving your balance makes sense for your plan.
Credit Card APR Calculator: Interest, DPR, and Real Cost (2025)
Free credit card APR calculator to find your Daily Periodic Rate (DPR), monthly interest charges, and effective APR. See the real cost of carrying a balance in 2025.
Credit Card Interest Calculator: Daily & Monthly Charges (2025)
Calculate your exact credit card interest using the Average Daily Balance (ADB) method. See how paying early saves money and visualize daily compounding.
Credit Card Minimum Payment Calculator: Payoff Time & Interest (2025)
Calculate exactly how long it will take to pay off your credit card with minimum payments. See total interest costs and find a faster debt-free date.